Suven Life Sciences Limited · NSE:SUVEN
Suven Life Sciences — Investor Presentation (September 2014)
27 slides from Suven Life Sciences's investor presentation, September 2014
Slide 1: Corporate Presentation
Corporate Presentation September 2014 CONFIDENTIAL 1
Slide 2: Safe Harbor statement
Safe Harbor statement Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions, contained in this presentation may be forward-looking statements that involve a number of risks and uncertainties. Although Suven Life Sciences Limite
Slide 3: Key investment highlights
Key investment highlights Stable business model – one of the few player in highest value chain of CRAMS- NCEs of innovator Strong pipeline Out-licensing pharma of 99 projects in potential for companies CRAMS (52 – pipeline of 13 NCEs for CNS Phase I, 46 – segment Phase II and 1 – Phase III) Robust f
Slide 4: Company snapshot
Company snapshot Pioneer in the field of high value Contract Research and Manufacturing Services (CRAMS) More than two decades of experience in CRAMS; High value high margin CRAMS for NCE based intermediates Over 700 projects experience in CRAMS; 99 being currently active (52 in Phase I, 46 in P
Slide 5: Company evolution
Company evolution Pioneer in high value segment CRAMS (NCE based) Diverse and entrenched client relationships Established financial performance, strong corporate Out-licensing potential through its own CNS based governance molecules 99 NCE based CRAMS projects in pipeline 2006 including 52 in phase
Slide 6: Vision and Mission
Vision and Mission Vision First to launch NCE based drugs addressing unmet medical needs for global population, from India. To be a prominent drug discovery research company in CNS segment in Asia-Pacific region with global reach To discover and develop new technologies and creation of IPs tar
Slide 7: Company overview
Company overview Two differentiated business models catering to a stable growing revenue base and a huge upside potential: Only one of the pure NCE based CRAMS companies Drug Discovery and New Chemical Entities (NCEs) – Focused on the lucrative CNS segment World class facilities and research
Slide 8: Differentiated business model
Differentiated business model Lead Formulation Clinical Chem lib/ NCE based identification / Lead Pre - Process Development Supplies Comb Chem intermediate characterizatio Optimization Clinical Research & Analytical Manufacturing hits s/APIs n Services & Packaging Contract Research Discovery Researc
Slide 9: Facilities
Facilities 300 CM reactors (93) 500L to 10 KL GL/SS GMP Intermediates Suryapet, Andhra Banjara Pradesh, India Hills, Hyderabad, India SUVEN Intermediate Mfg. Corporate Office Facility US FDA Approved Pashamylaram, Andhra Pradesh, India SUVEN API & Formulation Facility 120 kL reaction volume
Slide 10: Organization structure
Organization structure Mr. Venkat Jasti Chairman & CEO Dr. Ramakrishna Nirogi Dr. Veera Reddy Arava Dr. Rajendran C Dr. Padmakumar VP - Discovery VP R&D VP Process Research Kaimal Research VP Strategic Alliance Mr. Murthy VSN Mr. Mohan Rao Mr. Venkatraman Mr. C. Kameshwar Rao Mr. Subba Rao P VP - Te
Slide 11: Business Model 1 - CRAMS value chain
Business Model 1- CRAMS CRAMS business– presence in high value NCE based CRAMS First company to launch a new business model and coined the phrase CRAMS in 1995 Suven’s focus Supplies for NCE molecules Focus only on NCE based CRAMS by providing – best in class margins value addition to the innova
Slide 12: CRAMS business – current status
CRAMS business – current status Focus and capabilities Supplying intermediates to global innovator companies for their NCEs during the clinical Strong pipeline of phase of drug development CRAMS projects Currently working on 99 NCE based CRAMS projects including 52 in phase I, 46 in phase II and
Slide 13: Well entrenched customer base
Well entrenched customer base Long term partnerships with global big pharma MNCs ensures long term revenue growth CONFIDENTIAL 13
Slide 14: CRAMS business – future strategy
CRAMS business – future strategy Entering into long term contracts Suven’s strengths Convert NCE based contract research for ‘Go-to’ CRAMS player for NCEs Customer retention & acquisition the global big pharma to contract manufacturing on commercial launch Innovation led approach for big pharm
Slide 15: Business Model 2 - Own NCEs in CNS segment
Business Model 2- Own NCEs Innovative R&D – Focus on NCEs in the highly lucrative CNS segment Started working on drug discovery and innovation on its own in 2003 Strong pipeline of thirteen molecules at different stages of development Specialization in CNS (central nervous system) addressing c
Slide 16: CNS – One of the largest & fastest growing therapeutic areas
CNS – One of the largest & fastest growing therapeutic areas CNS share of the Global Pharma market CNS segment- high growth TA 12 11.3 10.2 9.7 10 8.7 9% CNS 8.5 Oncology 8 7.4 8% Pain 6.2 6.4 33% Antidiabetic 6 4.7 Antihypertensive 7% Antibacterials 4 2.6 Respiratory 1.7 Autoimmune diseases 2 6% Li
Slide 17: CNS amongst the top two therapeutic areas in R&D spending
CNS amongst the top two therapeutic areas in terms of R&D spending by Big Pharma CNS continues to attract high amount of investments in R&D across therapeutic areas 20.9% 23.0% Anti-cancer Nervous System Alimentary & Metabolism R&D spending for Big 1.9% Pharma companies was Musculoskeletal USD 135 B
Slide 18: Suven's NCE pipeline
Suven’s NCE pipeline al Neurodegenerative Diseases III ery La cted II I ic n e- e- ch e- MCI / Cognition / Alzheimer's / lin sig D ov as as un pe IN as eC sc De Schizophrenia Ph Ph Ex Ph Di Pr SUVN-501 (5-HT 6 Antagonist) SUVN-502 (5-HT6 Antagonist) 2008 2009 2014 SUVN-507 (5-HT6 Antagonist) SUVN-51
Slide 19: Promising NCE pipeline and future strategies
Promising NCE pipeline l ica III y La cted II I er n Pain / Major Depressive Disorder e- e- ch e- lin sig D ov as (MDD) as un pe IN as eC sc De Ph Ph Ex Ph Di Pr nAChR Alpha-4 Beta-2 Antagonist (Pain) SUVN-911 (nAChR Alpha-4 Beta-2) (MDD) 2014 2015 CB2 Agonist (Pain) Future strategies To conduct p
Slide 20: Potential monetization of similar molecules in the past
Potential monetization of similar molecules in the past Alzheimers program Lu AE58054 (Lundbeck Otsuka) July 2013 (CoMentis Astellas) Apr 2008 $150 Mil upfront for phase II program $100 Mil upfront ($80+$20) for Phase I program BACE discovery collaboration June 2009 Dimebon (Medivation Pfizer)
Slide 21: Strong corporate governance practices
Strong corporate governance practices No capitalization of NCE related R&D expenses and the same have been expensed off every year despite high amount being involved (Rs3.38bn till FY14) and no revenue getting accrued All the NCE related R&D costs have been funded through internal accruals and n
Slide 22: Income statement
Income statement Year ending March 31' FY12 FY13 FY14 ` ` ` INR Million Million Million Income 2061 2589 5133 Pre-R&D EBITDA 581 889 2700 Pre-R&D EBITDA Margin (%) 28.2 34.3 52.6 EBITDA 250 542 2221 EBITDA Margin (%) 12.2 20.9 43.3 EBIT 191 464 2133 EBIT Margin 9.2 17.9 41.5 Financing costs 99 135 1
Slide 23: Balance sheet
Balance sheet Year ending March 31' FY12 FY13 FY14 ` ` ` INR Million Million Million Share capital 117 117 117 Reserves & surplus 1,158 1,428 2,528 Networth 1,275 1,545 2,644 Minority interests 0 0 0 Total Debt 779 920 663 Def. tax liab. (net) -176 -157 276 Capital employed 1,878 2,308 3,583 Net fix
Slide 24: Cash flow statement
Cash flow statement CASH FLOW STATEMENT FY12 FY13 FY14 PBT 91 329 2027 Depreciation 85 105 115 Interest Paid 99 128 77 Other Adjustments (Loss on Sale of Assets) 35 (0) 0 Other Income (incl. interest recvd) (7) (10) (25) Operating Profit before W.Cap Changes 304 551 2194 (Increase)/Decrease in Worki
Slide 25: Ratio analysis
Ratio analysis Year ending March 31‘v FY12 FY13 FY14 RoE (%) 11.3 21.9 68.8 RoCE (%) 18.2 21.3 51.9 Dividend yield (%) 2.2 1.3 3.5 Dividend payout (%) 24.4 11.4 20.3 Asset turnover (x) 0.8 0.9 1.3 Net Debt/Equity (x) 0.6 0.5 0.0 Net debt/EBITDA (x) 3.0 1.3 0.0 Net debt/Op. CF (x) 2.2 3.0 0.0 Interes
Slide 26: Key financial parameters
Key financial parameters Revenue growth EBITDA Margin ₹ mn % % 6000 110 60 97.9 95 52.3 5000 50 80 4000 40 42.93 65 36.8 34.1 3000 50 30 29.7 27.5 2000 35.7 35 26.3 20 20.62 16.3 20 1000 5 10 10.40 9.01 11.33 0 -7.6 -10 0 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Revenue Growth%(RHS) EBITDA
Slide 27: Contact
Contact Suven Life Sciences Ltd 6/F, Serene Chambers Road No. 5, Avenue 7 Banjara Hills Hyderabad 500034 Tel: +91 40 2354 1142 Fax: +91 40 2354 1152 For queries and requests, please contact: Venkatraman Sunder, VP, Corporate Affairs Suven Life Sciences Ltd. Email: vsunder@suven.com For more info: ww
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